US Senators Demand to Stop Facebook’s Novi Wallet Project
Hours after the launch of Facebook’s cryptocurrency wallet, five senators called for an immediate shutdown.
One of the opponents of the new project was Senator Elizabeth Warren. She and four other senators called on Facebook CEO Mark Zuckerberg to “stop” the project immediately.
In a general letter sent to Zuckerberg on October 19, Democratic senators wrote:
“Given the scale of the scandals surrounding your company, we are writing to express our strong opposition to Facebook’s renewed efforts to launch a cryptocurrency and digital wallet, now called ‘Diem’ and ‘Novi’, respectively.”
Facebook’s Diem stablecoin project has been vetted and blocked by regulators for many years. And the Novi crypto wallet was created to store the Diem token and other stablecoins.
The letter was sent from Senator Brian Schatz’s office and signed by Tina Smith, Richard Blumenthal, Banking Committee Chairman Sherrod Brown and Elizabeth Warren.
Senators are confident that Facebook cannot be trusted to manage the payment system or digital currency when its existing ability to manage risk and ensure consumer safety has been insufficient.